2. Voluntary Retirement Scheme
• VRS is a scheme whereby the employee is offered to
voluntarily retire from his services before his retirement
date.
• Method used by companies to reduce surplus staff.
• Introduced in both the public and private sectors
• Public sector undertakings have to obtain prior approval
of the government before offering and implementing the
VRS
3. Voluntary Retirement Scheme
When Can VRS be Adopted?
• Due to recession in the business.
• Due to intense competition, the establishment
becomes unviable unless downsizing is resorted to.
• Due to joint-ventures with foreign collaborations.
• Due to takeovers and mergers.
• Due to obsolescence of Product/Technology.
4. Voluntary Retirement Scheme
Guidelines
• It applies to an employee of the company who has completed ten years
of service or completed 40 years of age
• It applies to all employees (by whatever name called), including workers
and executives of the company excepting Directors of the company
• The scheme of voluntary retirement has been drawn to result in overall
reduction in the existing strength of the employees of the company
• The vacancy caused by voluntary retirement is not to be filled up, nor
the retiring employee is to be employed in another company or concern
belonging to the same management
• The employee has not availed in the past the benefit of any other
voluntary retirement scheme.
5. Voluntary Retirement Scheme
Implementation of VRS
• Transparent and proactive communication
by senior managers
• Management must actively explore all
other alternatives to manpower reduction
• Arrangement of funds for VRS.
6. Voluntary Retirement Scheme
Demerits of VRS
• VRS may create fear, a sense of uncertainty among
employees.
• Severance costs are’ heavy and outweigh the
possible gains.
• Trade unions generally protest the operation of
such schemes
• Some of the good, capable and competent
employees may also apply for separation
7. Voluntary Retirement Scheme
Challenges
• The effect of downsizing on the work of the establishment is to be
considered
• Ensuring that all concerned employees and managers participate in the
decision
• Transparency should be seen and used in choice of persons to be
retired.
• Motivating employees who will stay with the company, removing their
apprehensions and fears, if any.
• Providing professional assistance to employees who agree to accept
VRS
8. National Commission on Labour
• National Commission on Labour is an
Indian statutory body to recommend the
changes in the labour laws.
• Created by Ministry of Labour & Employment.
• The main objective of this body is to
recommend the changes in various labour laws
which safeguard the interest of labours.
9. First National Commission on
Labour
• The first National Commission on Labour was set up on 24
December 1966 Under the Chairmanship of Justice
P.B. Gajendragadkar
• The Commission submitted its report in August 1969 after
detailed examination of all aspects of labour problems,
both in the organized and unorganized sectors.
• Main Objective: To study the Industrial relations situation
in the country and to make recommendations for
improvement.
10. Second National Commission on
Labour
• The Second National labour commission was
brought into existence after a long gap of 33 years.
• The second National Commission on Labour (NCL)
was set up on 15 October 1999 under the
chairmanship of Ravindra Varma which submitted
its report to the then Prime Minister Mr. Atal Bihari
Vajpayee on 29 June 2002.
• Main Objective: Setting up wages boards for fixing
wage rates for workers in any industry.
11. National Commission on Labour
Functions
• To secure fair wages for workers.
• To safeguard the security of tenure and improve working conditions.
• To enlarge opportunity for promotion and training.
• To improve working/living condition.
• To provide for Educational and recreational facilities.
• To help in Technological advancements.
• To promote identity of interests of workers with their industries.
• To promote individual and collective welfare.
• To offer responsive cooperation in improving levels of production and
productivity, discipline and high standards of quality.
12. National Commission on Labour
Responsibility to Unions
• In addition to functions, commission also
gave following responsibility to unions:
– Promotion of National Integration.
– To influence Socio Economic policy.
– To instil a sense of responsibility to the industry
and the community.
13. Areas Covered Under National
Commission on Labour
Industrial
relations and
Grievances
Wages Work Hours
Collective
Bargaining
Technological
Change Social security Safety
Grants-in-aid to
research and
academic
institutions
International co-
operation
Labour
education
Welfare and
working
conditions
Child and
Women labour
and so on
14. National Commission on Labour
Recommendation
• Minimum intervention from government.
• Strengthening the Trade Unions.
• Appropriate legal provisions governing:
– Compulsory recognition of unions
– Prohibition of unfair labour practices
– Bargaining in good faith by both parties
• Intensification of workers’ education.
• One union for one plant being popularised
• Encouraging Bipartite constitutions and regulations.
15. International Labour Organization
• The International Labour Organization (ILO) is a
United Nations agency dealing with –
– Labour issues,
– Relating to international Labour standards,
– Social protection, and work opportunities for all.
• The ILO organizes the International Labour
Conference in Geneva every year in June, where
conventions and recommendations are crafted and
adopted
16. • Full employment and raising of standards of living
• The extension of social security measures to provide a basic income
to all in need of such protection and comprehensive medical care
• Adequate protection for the life and health of workers in all
occupation.
• Provision for child welfare and maternity protection.
• The provision of adequate nutrition, housing and facilities for
creation and culture.
• The assurance of quality of educational and vocational opportunity
International Labour Organization
Objectives
17. • This governing body is composed of -
– 28 government representatives,
– 14 workers' representatives, and
– 14 employers' representatives
• Ten of the government seats are held by member states that are
nations of "chief industrial importance," as first considered by an
"impartial committee.”
• The nations are Brazil, China, France, Germany, India, Italy, Japan,
the Russian Federation, the United Kingdom and the United States.
The terms of office are three years.
International Labour Organization
Governing Body
18. • To contribute to the establishment of lasting peace by promoting social
justice.
• To improve, labour conditions & living standards through
• international action
• To promote economic & social stability.
• INTERNATIONAL LABOUR CODE - Is a collection of international minimum
standards related to health, welfare, living & working conditions of workers
all over the world.
• The ILO also provides assistance to organizations interested in the
betterment of living & employment standards.
• ILO & WHO work in closes collaboration in the field of health & labour.
International Labour Organization
Functions
19. • Raise global awareness and understanding of modern forced
labour.
• Assist governments in developing and implementing new laws,
policies and action plans.
• Develop and disseminate guidance and training materials on key
aspects of forced labour and trafficking.
• Implement innovative programs that combine policy development,
capacity building of law enforcement
• Targeted, field-based projects of direct support for both prevention
of forced labour and identification and rehabilitation of its victims.
International Labour Organization
Forced Labour
20. • Social Security
– Workmen‘s compensation
– Sickness insurance
– Invalidity, old age and survivors‘ insurance
– Unemployment provision
• Condition of Work
– Hours of work
– Weekly rest
– Holidays with pay
– Appropriate wages
International Labour Organization
21. • Creation of international standards of labour
• Employment promotion
• Collection & distribution of information and publication
• Research and studies
• Improvement of working conditions and working
environment
• Development of social institutions
International Labour Organization
Major Activities
22. • India is a founding member of the ILO and has been a
permanent member of the ILO Governing Body since 1922. The
first ILO Office in India opened in 1928.
• Most Important Areas affected by ILO In India are
– Child labor
– Forced labor
– Trade union movement
– Occupational safety
– Employment generation
International Labour Organization
In India
